Head-To-Head Contrast: First BanCorp. (NYSE:FBP) versus First Community (NASDAQ:FCCO)

First BanCorp. (NYSE:FBP) and First Community (NASDAQ:FCCO) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for First BanCorp. and First Community, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	4	1	2.86
First Community	0	1	2	0	2.67

First BanCorp. currently has a consensus target price of $25.86, indicating a potential upside of 8.09%. First Community has a consensus target price of $34.00, indicating a potential upside of 14.83%. Given First Community’s higher probable upside, analysts plainly believe First Community is more favorable than First BanCorp..

Earnings and Valuation

This table compares First BanCorp. and First Community”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	2.97	$344.87 million	$2.25	10.63
First Community	$114.00 million	2.44	$19.20 million	$2.55	11.61

First BanCorp. has higher revenue and earnings than First Community. First BanCorp. is trading at a lower price-to-earnings ratio than First Community, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First BanCorp. and First Community’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	28.31%	17.51%	1.76%
First Community	17.29%	14.19%	1.11%

Volatility & Risk

First BanCorp. has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Institutional and Insider Ownership

97.9% of First BanCorp. shares are held by institutional investors. Comparatively, 61.3% of First Community shares are held by institutional investors. 1.9% of First BanCorp. shares are held by insiders. Comparatively, 8.8% of First Community shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.3%. First Community pays an annual dividend of $0.64 per share and has a dividend yield of 2.2%. First BanCorp. pays out 35.6% of its earnings in the form of a dividend. First Community pays out 25.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First BanCorp. has increased its dividend for 6 consecutive years and First Community has increased its dividend for 4 consecutive years. First BanCorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First BanCorp. beats First Community on 13 of the 18 factors compared between the two stocks.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

About First Community

First Community Corporation operates as the bank holding company for First Community Bank that provides various commercial and retail banking products and services to small-to-medium sized businesses, professionals, and individuals. The company operates through Commercial and Retail Banking, Mortgage Banking, and Investment Advisory and Non-Deposit segments. Its deposit products include checking, NOW, savings, and individual retirement accounts; and demand deposits, as well as other time deposits, such as daily money market accounts and longer-term certificates of deposit. The company's loan portfolio comprises commercial loans that include secured and unsecured loans for working capital, business expansion, and the purchase of equipment and machinery; consumer loans, including secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; real estate construction and acquisition loans; and fixed and variable rate mortgage loans. It also provides online banking, internet banking, cash management, safe deposit boxes, direct deposit of payroll and social security checks, and automatic drafts for various accounts. In addition, the company offers non-deposit investment products and other investment brokerage services; VISA and MasterCard credit card services; investment advisory services; and insurance services. The company was incorporated in 1994 and is headquartered in Lexington, South Carolina.